ENTREPRENEURSHIP DEVELOPMENT

WALMART

SUBMITTED BY SUBMITTED TO

PAVAN KUMAR G C AISWARYA D PILLAI

MBA I YEAR DEPT OF MANAGEMENT

“C” SECTION

ACHARYA INSTITUTE OF TECHNOLOGY

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 TABLE OF CONTENTS
1 HISTORY 3-4
2 EXECUTIVE SUMMARY 5-6
3 VALUES AND MISSION 7
4 BUSINESS OBJECTIVES 8
5 OWNERSHIP FORM 9-10
6 FUNDINGS DEBT AND EQUITY 11
7 PRODUCTS AND SERVICES 12
8 COMPETITIVE ANALYSIS 13
9 PATENTE AND COPYRIGHTS 14
10 THE PLAN 15-16
11 SWOT ANALYSIS 17-18
12 MARKETING MIX 19
13 ORGANIZARIONAL PLAN 20
14 FINNANCIAL STATEMETS 21-29
15 CONCLUSION 30

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HISTORY OF WALMART

Wal-Mart was founded by Sam Walton in Rogers, Arkansas, in 1962 and focused
its early growth in rural areas, thereby avoiding direct competition with retailing
giants such as Sears and Kmart. As it grew, the company developed new retail
formats, including Sam’s Club discount warehouses (1983) and Wal-Mart
Supercenters (1988). Within a decade of opening the combination grocery and
merchandise Supercenters, Wal-Mart had become one of the largest grocers in the
United States. An emphasis on customer attention (e.g., direct mail advertising),
cost controls (e.g., low-cost imports), and efficiencies in its distribution networks
(e.g., regional warehousing) helped Wal-Mart become the largest retailer in the
United States in 1990.

It moved into international markets one year later with the opening of a store in
Mexico, and growth continued, either through new stores or the acquisition of
established retailers, in countries such as Canada, China, Germany, and the United
Kingdom. The company experienced a decline in sales immediately following
Walton’s death in 1992 but rebounded with the introduction of the company’s
house brand Great Value in 1993. In the years after Walton’s death, the company
was less fiscally frugal, quickly accumulating corporate debt in order to finance
such new strategies as a group of additional Wal-Mart Supercenters. The financial
risk paid off: by 1995 Wal-Mart’s sales had doubled, by 1999 the company had
become the world’s largest private employer, and by 2001 its total sales surpassed
those of Exxon Mobil, ranking Wal-Mart as the largest corporation in the world.

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Wal-Mart remained a global leader in the ensuing years, and in the 2010s it began
to acquire numerous e-commerce businesses, including Jet.com (2016) and
Moosejaw (2017). In 2018 the company changed its name to Walmart.

Its extreme growth did not occur without controversy. Walmart has been criticized
for contributing to urban sprawl by forcing out of business local merchandisers,
many of whom were unable to compete with the company’s economy of scale.
Walmart has also been criticized for perpetuating low wages; its workers make
significantly less than the average retail worker, in large part because of the
company’s anti-union stance. Its merchandising practices are nonetheless emulated
by other retailers.

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EXECUTIVE SUMMARY

Walmart is a retail corporation that has gained a multinational status selling

numerous products to the customers. Walmart is operating as a hypermarket and
also a grocery store that have been successful throughout the country and at
international level. Because the company operates in selling retail products, he
main target market are people who use these products everyday and are
continuously benefiting from the services of the company. In many cases, walmart
has been attracting customers from different aspects of life. The company also
retails at international level through the internet. This is a initiative that have been
growing for some time now.

Walmart provided service wealthy people as well as people were living below the
poverty line as well as the middle class people. Because of a large array of
customers served, the company is guaranteed success and this is the reason why it
has been making many proporsls for expansion. Through strategic planning, the
management of walmart plan to organise and set goals that focus on the resources
and making the available resources towards a common goal set by thecompany
management. Strategic planning is a crucial part of an organisation that is aiming
to expand and look for new strategies. As an international company that deals with
departmental stores and selling numerous products to customers, it is important to
integrate the best strategies that would help in the expansion.

Starting a strategic plan helps to change an environment and make the best
strategies that can be used to outdo the competitors. Expanding a business can
sometimes be risky as the business owners do not know what to expect in the new
market. At the same time, it is never easy to outdo competitors especially on the
locations that they are already renounced in. Different components of strategic plan
and goals as well as market values have to be analysed.

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This presentation will give a consolidated strategic plan that is directed towards the
investors who are a interested in the new plan of walmart. The company is
determined to expand so as o successfully welcome new investors who can
participate in this process.

The company have a competitive advantage over the other companies because of
the strong client base that it had already established. The company occupies both
high class and low class customers. This gives it an advantage over the other
competitorsThe company have got a massive competitive advantage that comes o
management and recruitment.

The chain of management starts with the chief executive officer(CEO) who heads
ll the operations and is followed closely by the executive director. The main role of
executive director is to monitor the operations of the management teams such as
human resource department, sales department, finance and production
departments. Walmart also targets internal markets and external markets through
understanding diverse cultures across the country and across the globe. The
company also comes up with products that are accepted to ensure that there is no
problems between the government and the company. It is also taking care of the
Christian core values by maintaining honesty, openness and trust.

Through rationalization, there are endless benefits associated with operating a

grocery store because they are expenses such as production that do not come in the
online store. Competition in the market is the main challenge and barrier to success
in the market. There are any stores such as amazon that are trying to outdo the
company. However, the market base is stll strong. Within the past few years, the
company have realised a profit margin of more than three billion. The expanding
markets is ready to accept the products of the company including those that are
tailor-made and those that are specific to the demands of their clients.

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VALUES AND ETHICS OF WALMART

At Walmart, they remind their selves each day that our work isn’t just about what
they achieve but how they achieve it. The way they conduct their business is as
important as the products they sell and the services they provide. That means
complying with the laws of the communities where we do business. But that is not
enough. Associates who work at Walmart are expected to operate based on their
high standards and values — respect, service, excellence and integrity.

Acting consistently with these values demands that a culture of integrity guides all
our decisions. They Code of Conduct reflects who we are as a company and how

they bring their culture to life in their work every day. It applies to every Walmart
associate. They also expect their business partners to embrace their values and
meet these high standards. Associates and partners who do not share these values
do not belong at Walmart.

Their commitment to integrity is reflected in their actions. From ensuring the food
and products they sell are safe; to using technology and data ethically and
responsibly; to investigating concerns raised by their customers, associates and
stakeholders their our commitments are embedded into every action they take.

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 OBJECTIVE OF SETTING UP A BUSINESS

Walmart aim to build a better world — helping people live better and renew the
planet while building thriving, resilient communities. For them this means working
to create opportunity, build a more sustainable future, advance diversity, equity
and inclusion and bring communities closer together. And at the end of the day,
helping their customers save more of their hard earned money for the things they
care about most. Because at Walmart, Live Better is what we do every day.

Opportunity
Walmart is committed to making retail a place of inclusive and equitable
opportunity for their associates and across related sectors. They use their position
as an employer, retailer and community member to promote respect for human
rights. And they continue to pursue special initiatives to increase the sourcing of
products that support the creation of American jobs.

Sustainability

They understand that for a business to last, it must have a fundamental reason for
being – which is found in the value it creates not only for shareholders, but for the
world. That’s why, for more than 15 years, Walmart has been collaborating with
others to drive positive impact across global supply chains. Their focus on climate,
nature, waste and people in supply chains has strengthened our business and
communities in measurable ways.

Community

We aim to help their neighbours live better by strengthening the local communities
where our associates and customers live. They’re proud to be a part of thousands of
communities worldwide and support them, whether that’s through local giving and
associate volunteering, providing emergency relief when disasters strike, providing
access to healthy food and services or relieving hunger through food donations and
our philanthropic work to provide nutrition education and healthier food for all.

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FORM OF OWNERSHIP

 Walmart Inc. is a publicly traded company, which means that its ownership
is divided among its shareholders who own shares of the company.
 Walmart's shares are listed on the New York Stock Exchange (NYSE)
under the ticker symbol "WMT".
 As of September 2021, the largest shareholder of Walmart is the Walton
family, which founded the company, and collectively owns around 50% of
the company's shares.
 The remaining shares are owned by a wide range of individual and
institutional investors.

NAME, QUALIFICATION OF THE OWNERS

The current chairman of Walmart is Greg Penner, who is the son-in-law of
Walmart's founder, Sam Walton.

GREG PENNER

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 Doug McMillon is the company's CEO.

He holds a Bachelor's degree in Business Administration from the University of

Arkansas, which he received in 1989. He began his career with Walmart as a
summer associate in 1984 and worked his way up the company's ranks to become
CEO in 2014.

In addition to his Bachelor's degree, McMillon has also completed the Harvard
Business School's Advanced Management Program. However, it's important to
note be an indicator of someone's knowledge and skills, they are not the sole
determinants of a CEO's success. Leadership qualities, experience, and industry
knowledge are also critical that while educational qualifications can factors in a
CEO's performance.

HEADQUARTERS OF WALMART
The Walmart headquarters is located in Bentonville, Arkansas - The location of
the first Walmart stores.

Walmart Headquarters 702 S.W. 8th St. Bentonville, AK 72716

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WALMART’S FUNDINGS– A MIX OF DEBT AND EQUITY

Performance Summary

 Walmart's debt / equity last quarter was 76.8%

 Walmart's debt / equity for fiscal years ending January 2019 to 2023
averaged 80.8%.
 Walmart's operated at median debt / equity of 78.6% from fiscal years
ending January 2019 to 2023.
 Looking back at the last 5 years, Walmart's debt / equity peaked in January
2020 at 97.9%.
 Walmart's debt / equity hit its 5-year low in January 2022 of 70.2%.
 Walmart's debt / equity decreased in 2021 (78.6%, -19.7%) and 2022
(70.2%, -10.8%) and increased in 2019 (80.6%, +34.5%), 2020 (97.9%,
+21.4%), and 2023 (76.8%, +9.5%).

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PRODUCTS AND SERVICES OF WALMART
Walmart is a multinational retail corporation that offers a wide range of products and
services to its customers. Here are some of the main products and services offered by
Walmart:

 General Merchandise: Walmart offers a variety of general merchandise

products such as clothing, electronics, toys, home decor, and furniture.
 Groceries: Walmart is one of the largest grocery retailers in the world, and
offers a wide range of fresh and packaged food items, as well as household
essentials.
 Pharmacy Services: Walmart offers prescription drugs, over-the-counter
medications, and health products in its pharmacies. They also provide
immunizations, health screenings, and other health services.
 Financial Services: Walmart offers financial services including check
cashing, bill payment, money transfers, and prepaid debit cards.
 Walmart+ Membership: This is a membership program that offers
members benefits such as free delivery on eligible orders, fuel discounts, and
access to member prices on select items.
 Walmart Pickup and Delivery: Walmart offers both pickup and delivery
services for groceries and other items ordered online.
 Walmart Marketplace: Walmart Marketplace allows third-party sellers to
sell their products on Walmart's website.
 Auto Services: Walmart offers tire and lube services, as well as battery
installation and other automotive services.
 Garden Center: Walmart offers a wide range of gardening and outdoor
living products such as plants, tools, and outdoor furniture.
 Entertainment: Walmart also offers a selection of entertainment products
such as books, movies, music, and video games.

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COMPETITIVE ANALYSIS OF SIMILAR PRODUCTS OF
WALMART
To provide a comparative analysis of similar products offered by Walmart,
let's take a look at two popular items - laptops and TVs.

 Laptops: Walmart offers a range of laptops from various brands,

including Acer, Dell, HP, Lenovo, and more. Prices range from around
$200 for entry-level models to over $1,000 for high-end models.
Walmart also offers a range of features such as touchscreen displays, 2-
in-1 designs, and gaming laptops.
Comparatively, Best Buy is a major competitor in the electronics retail space,
offering a similar range of laptops with similar features and prices. Best Buy
also offers financing options, which Walmart does not currently provide.

 TVs: Walmart offers a range of TVs from popular brands such as

Samsung, LG, and Vizio, with prices ranging from around $100 for
smaller screens to over $1,000 for larger screens with advanced
features such as 4K resolution and smart functionality.
Best Buy also offers a similar range of TVs from various brands, with similar
prices and features. One key advantage of Best Buy is that they offer in-home
installation services, which Walmart does not currently offer.
Overall, while Walmart and Best Buy offer similar products with similar
features and prices, Best Buy has an advantage in terms of financing options
and in-home installation services for larger electronics.

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 PATENTS, COPYRIGHTS, TRADEMARKS, FRANCHISES, AND
LICENSING AGREEMENTS
As a multinational retail corporation, Walmart has a range of intellectual
property assets, including patents, copyrights, trademarks, franchises, and
licensing agreements. Here is an overview of Walmart's key intellectual
property assets:

Patents: Walmart holds a number of patents related to various products and

services. For example, Walmart has patents related to self-driving shopping
carts, smart shopping lists, and computer vision technology for monitoring
store shelves.
Copyrights: Walmart holds copyrights for various materials, including
product designs, advertisements, and marketing materials.
Trademarks: Walmart has registered trademarks for its brand name and
logo, as well as various product names and logos, such as "Great Value" and
"Sam's Choice."
Franchises: Walmart offers franchises for its Walmart Neighborhood Market
stores and Sam's Club stores. Franchisees pay a fee for the right to use the
Walmart or Sam's Club brand, as well as access to Walmart's supply chain
and other resources.
Licensing Agreements: Walmart has licensing agreements with various
companies to sell their products in Walmart stores. For example, Walmart has
licensing agreements with Disney, Marvel, and other entertainment
companies to sell merchandise featuring their characters.
Overall, Walmart's intellectual property assets play a key role in protecting
the company's brand and products, as well as generating revenue through
franchising and licensing agreements.

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 THE PLAN
1) THE MARKETING PLAN:

Market demographics of Walmart

Walmart is a massive retail chain that serves a diverse range of customers
across the United States and beyond. Its marketing demographics can be
broadly categorized as follows:

 Age: Walmart serves customers of all ages, but its primary demographic
tends to be adults between the ages of 25 and 54. This group makes up the
majority of Walmart's customer base, with younger and older customers also
frequenting the store.

 Gender: Walmart's customer base is split relatively evenly between men and
women, with slightly more women shopping at Walmart than men.

 Income: Walmart serves customers across the income spectrum, with a

focus on serving lower- and middle-income households. Walmart's
"everyday low prices" strategy aims to attract customers who are value-
conscious and looking to save money on their purchases.

 Ethnicity: Walmart's customer base is diverse, with a significant percentage

of its customers coming from Hispanic/Latino, African American, and Asian
American communities.

 Location: Walmart has stores in both urban and rural areas, and its
marketing efforts reflect this geographic diversity. In rural areas, Walmart
often serves as the primary retailer for local communities, while in urban
areas, Walmart competes with other large retailers for customers' business.

 Overall, Walmart's marketing demographics reflect the store's focus on

serving a wide range of customers and providing value and convenience to
shoppers.

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Strengths and weakness of competitors
Walmart has a number of competitors in the retail industry, each with their own
strengths and weaknesses. Here are some examples:

 Target: Target is a major competitor of Walmart and has a similar business

model, offering a wide range of products at competitive prices. One of
Target's strengths is its focus on trendy and stylish products, which can
appeal to a younger demographic. However, Target typically charges
slightly higher prices than Walmart and may not be as accessible to low-
income shoppers.
 Amazon: Amazon is a major player in the retail industry and competes with
Walmart through its online marketplace. Amazon's strengths include its vast
selection of products, fast shipping times, and competitive pricing. However,
Amazon does not have a physical retail presence like Walmart, which can be
a disadvantage for customers who prefer to shop in-person.
 Costco: Costco is a membership-based warehouse club that competes with
Walmart by offering bulk products at low prices. Costco's strengths include
its strong customer loyalty and the fact that it typically charges lower prices
than Walmart. However, Costco's limited selection of products may not
appeal to customers looking for a wider range of options.
 Dollar Tree: Dollar Tree is a discount retailer that competes with Walmart
by offering products at extremely low prices. Dollar Tree's strength is its
affordability, which can be appealing to low-income shoppers. However,
Dollar Tree's limited selection of products and smaller store size may not be
as convenient for customers who are looking for a wider range of options.

Overall, Walmart's competitors have their own unique strengths and weaknesses.
While Walmart has a strong presence in both physical and online retail spaces, its
competitors may offer advantages in terms of pricing, product selection, or
customer experience.

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 SWOT ANALYSIS
Here is a SWOT analysis of Walmart:

STRENGTHS:
Size and Scale: Walmart is the largest retailer in the world and has a strong
presence in both physical and online retail spaces.

Brand Recognition: Walmart's brand is well-known and trusted by customers,

which helps to attract and retain customers.

Low Prices: Walmart's "everyday low prices" strategy appeals to value-conscious

customers who are looking to save money on their purchases.

Supply Chain: Walmart has a sophisticated supply chain management system that
allows it to efficiently move products from suppliers to stores.

Diverse Product Range: Walmart offers a wide range of products, including

groceries, electronics, clothing, and home goods, which attracts a broad customer
base.

WEAKNESSES
Negative Public Perception: Walmart has faced criticism for its labor practices,
environmental impact, and impact on small businesses.

Dependence on China: A significant percentage of Walmart's products are

manufactured in China, which can be a risk for the company in the event of trade
disputes or disruptions in the supply chain.

Limited Presence in International Markets: While Walmart has a strong

presence in the United States, its international operations are limited and may not
be as profitable as its domestic operations.

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OPPORTUNITIES:
E-commerce Growth: The growth of e-commerce presents an opportunity for
Walmart to expand its online presence and reach new customers.

International Expansion: Walmart could potentially expand its operations into

new international markets to increase its global footprint.

Sustainability: As consumers become more environmentally conscious, there is an

opportunity for Walmart to improve its sustainability practices and appeal to eco-
conscious customers.

THREATS:
Competition: Walmart faces competition from other major retailers like Target,
Amazon, and Costco, as well as smaller retailers and online marketplaces.

Economic Uncertainty: Economic downturns or recessions can impact consumer

spending and affect Walmart's sales and profits.

Regulatory Changes: Changes in government regulations or policies could impact

Walmart's operations and profitability.

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 MARKETING MIX STRATEGY
Walmart is a retail giant and uses a variety of marketing mix strategies to appeal to
its target market. The marketing mix, also known as the 4Ps, includes product,
price, place, and promotion. Here are some of Walmart's marketing mix strategies:

 Product mix strategy: Walmart offers a wide range of products from

groceries to electronics. The company focuses on offering quality products
at low prices to attract price-conscious customers. Walmart also has its own
private label brand, Great Value, which offers affordable options for
customers.
 Pricing mix strategy: Walmart's pricing strategy is based on offering the
lowest prices possible. The company uses a cost leadership strategy, which
means that it aims to offer the lowest prices in the market. Walmart also
offers price-matching, where it matches the prices of its competitors.
 Distribution mix strategy Walmart has a vast network of physical stores in
the United States and other countries. The company also has an online store
that offers customers the convenience of shopping from home. Walmart's
physical stores are strategically located in areas where there is a high
concentration of potential customers.
 Promotion mix strategy: Walmart uses a variety of promotional strategies
to reach its target market. The company uses advertising, such as television
and radio commercials, to promote its products. Walmart also has a loyalty
program, Walmart+, which offers benefits such as free shipping and
discounts to members. The company also uses sales promotions, such as
discounts and special offers, to attract customers.

Overall, Walmart's marketing mix strategies focus on offering customers low

prices and a wide range of quality products. The company uses a combination
of physical stores and online channels to reach its target market and uses
various promotional strategies to attract customers.

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 ORGANIZATIONAL PLAN

 Walmart’s organizational structure determines the company’s business

activities. Currently, these activities are mainly in the retail industry,
including operations in the e-commerce market.
 The company’s corporate structure also imposes limits on how the business
addresses its problems. Structural characteristics help facilitate the
company’s strategic implementations in capturing a bigger share of the retail
market. In relation, Walmart’s organizational culture determines the way
people respond to challenges in the workplace.
 The resilience of the company’s human resources partly depends on the
mindset supported through the corporate culture.
 Cultural features help the retail business adapt to changes and emerging
challenges in the international market.
 The long history of Walmart Inc. in succeeding and continually growing
internationally shows that the firm’s organizational structure and
organizational culture are helpful in bringing competitive advantages and
success.
 The organizational structure interacts with the organizational culture to
maintain the significant competitive advantage of Walmart against other
firms, such as Amazon and Target, as well as Apple, Google, and other
technology companies that have major online digital content distribution
operations.

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 FINANCIAL STATEMENTS
INCOME STATEMENT

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BALANCE SHEET OF WALMART

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CASHFLOW STATEMENT OF WALMART

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REVENUE AND PROFIT OF WALMART

Walmart annual/quarterly revenue history and growth rate from 2010 to 2023.
Revenue can be defined as the amount of money a company receives from its
customers in exchange for the sales of goods or services. Revenue is the top line
item on an income statement from which all costs and expenses are subtracted to
arrive at net income.

Walmart revenue for the quarter ending January 31, 2023 was $164.048B, a
7.31% increase year-over-year.

Walmart revenue for the twelve months ending January 31, 2023 was $611.289B, a
6.73% increase year-over-year.

Walmart annual revenue for 2023 was $611.289B, a 6.73% increase from 2022.

Walmart annual revenue for 2022 was $572.754B, a 2.43% increase from 2021.

Walmart annual revenue for 2021 was $559.151B, a 6.72% increase from 2020.

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 ASSETS AND LIABILITIES OF WALMART

Walmart total assets from 2010 to 2023. Total assets can be defined as the
sum of all assets on a company's balance sheet.

 Walmart total assets for the quarter ending January 31, 2023 were
$243.197B, a 0.68% decline year-over-year.
 Walmart total assets for 2023 were $243.197B, a 0.68% decline from
2022.
 Walmart total assets for 2022 were $244.86B, a 3.02% decline from
2021.
 Walmart total assets for 2021 were $252.496B, a 6.77% increase from
2020.

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 WALMART PE RATIO 2010-2023

Current and historical p/e ratio for Walmart (WMT) from 2010 to 2023. The price
to earnings ratio is calculated by taking the latest closing price and dividing it by
the most recent earnings per share (EPS) number. The PE ratio is a simple way to
assess whether a stock is over or under valued and is the most widely used
valuation measure. Walmart PE ratio as of March 28, 2023 is 22.58.

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WALMART QUICK RATIO

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RETURN ON EQUITY RATIO OF WALMART

Current and historical return on equity (ROE) values for Walmart (WMT) over the
last 10 years. Return on equity can be defined as the amount of net income
returned as a percentage of shareholders equity. Return on equity measures a
corporation's profitability by revealing how much profit a company generates with
the money shareholders have invested.

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WALMART ROA 2010-2023

Current and historical return on assets (ROA) values for Walmart (WMT) over the
last 10 years. Return on assets can be defined as an indicator of how profitable a
company is relative to its total assets. Calculated by dividing a company's
operating earnings by its total assets.

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 CONCLUSION

After extensive research and upon interviewing Ms. Touraine Jones, the relevance
of the topics we have reviewed throughout this semester became evident. Each
week we discussed the underlying intricacies of how a business operates as well as
how one can be improved. Of the many concepts, often times the most complex
were the most thought provoking. Personal inclinations of each classmate included;
arranging and understanding an organization's competitive priorities. The costs
associated with quality such as; prevention, appraisal, internal, external, and ethical
failure costs. As well as the idea of six sigma, displaying humans never ending
pursuit of perfection.

In regard to Walmart, three topics proved to be the most supportive to the

companies deficiencies; customer involvement meaning to incorporate the
customer themselves into a given process. Quality at the source specifically the
poka yoke system which is the idea of designing things in such a way there can be
no mistakes. Lastly, lean systems the goal of maximizing value while also
removing various forms of waste.

In conclusion, this project gave us many tangible and practical skills we will use
when assessing a company.

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